|
Bojangles' Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
How Much Does It Cost to Open a Bojangles' Franchise?
To open a Bojangles' franchise, you can expect a total initial investment ranging from $778,670 to $3,829,400. This includes an initial franchise fee of $35,000. Prospective franchisees must meet specific financial requirements, including a minimum net worth of $2,500,000 and at least $250,000 in liquid cash. Ongoing costs include a 4% royalty fee on gross sales for new units and a 3% marketing fee to support brand growth and advertising efforts.
What Is the Financial Performance and Growth of Bojangles'?
Bojangles' has demonstrated steady growth in its franchise network, increasing from 534 franchised units in 2021 to 561 units by 2023. While the company maintains a strong corporate presence with 266 company-owned stores, the shift toward more franchised locations is evident. In terms of performance, the brand sees a median annual revenue per unit of $2,500,000. Based on these figures, the estimated breakeven time for a new location is approximately 24 months, with a full investment payback period projected at 122 months.
Why Should You Consider Starting a Bojangles' Franchise?
Starting a Bojangles' franchise allows you to join a well-established brand famous for its "Famous Chicken 'n Biscuits." With over 820 total units across the system, the brand offers a proven business model and a significant market presence. The consistent increase in franchised units suggests a healthy demand for the brand's unique Southern flavor profile. Franchisees benefit from a structured support system, helping them navigate the competitive quick-service restaurant industry while leveraging a brand that commands high median annual revenues.
Is a Bojangles' Franchise the Right Investment for You?
Deciding to open a Bojangles' requires a commitment to high operational standards and a significant financial investment. With annual unit revenues ranging from approximately $1.76 million to $2.11 million at the lower end and reaching a median of $2.5 million, the potential for high-volume sales is clear. However, candidates must be prepared for the long-term nature of the investment, as the payback period spans several years. If you have the required $2.5 million net worth and a passion for Southern hospitality, Bojangles' offers a robust opportunity in the fried chicken sector.
Bojangles' Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Bojangles' Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 815 | 832 | 827 |
| Net Change YoY | N/A | +17 | -5 |
| Franchised Units | 534 | 547 | 561 |
| Net Change YoY | N/A | +13 | +14 |
| Corporate Units | 281 | 285 | 266 |
| Net Change YoY | N/A | +4 | -19 |
Financial Requirements
To qualify for a Bojangles' franchise, candidates must meet specific financial criteria, including a minimum net worth of $2,500,000 and liquid cash assets of at least $250,000. These requirements ensure that franchisees have the necessary capital to support the development and operation of their restaurant locations.
Initial Investment and Fees
The total initial investment for a Bojangles' unit ranges from a low of $778,670 to a high of $3,829,400, depending on the location and facility type. This investment includes a standard initial franchise fee of $35,000. These costs cover the essential components needed to establish a new restaurant under the Bojangles' brand.
Ongoing Royalties and Marketing
Franchisees are required to pay a recurring royalty fee of 4% of gross sales for new units. Additionally, there is a 3% marketing fee which contributes to brand-wide advertising and promotional efforts. These ongoing fees support the corporate infrastructure and the continued visibility of the brand in the competitive quick-service market.
Performance and Revenue Metrics
Bojangles' units demonstrate strong market presence with a median annual revenue per unit of $2,500,000. Performance across the system shows high-tier locations reaching up to $1,760,624 in revenue, while the lowest recorded annual revenue per unit stands at $2,111,968. Based on these figures, the estimated breakeven time is 24 months, with a full investment payback period of approximately 122 months.
System Growth and Unit Count
The Bojangles' network has shown consistent growth in its franchised base, increasing from 534 units in 2021 to 561 units by 2023. While the number of corporate-owned units has slightly decreased from 281 to 266 over the same period, the total unit count remains robust at 827 locations, reflecting a strategic shift toward a more franchise-heavy model.
Franchise Opportunity
Bojangles' offers a compelling opportunity for entrepreneurs looking to enter the quick-service restaurant industry with a well-recognized brand. With a proven track record and a growing footprint of over 560 franchised locations, the brand provides a structured path to business ownership supported by established operational systems and a loyal customer base.
Frequently Asked Questions
The total initial investment for a Bojangles' restaurant ranges from a low of $778,670 to a high of $3,829,400. This wide range accounts for variations in real estate, construction costs, and equipment needs.